Correlation Between Zijin Mining and Hawkins
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Hawkins at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zijin Mining and Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zijin Mining Group and Hawkins, you can compare the effects of market volatilities on Zijin Mining and Hawkins and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zijin Mining with a short position of Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Hawkins.
Diversification Opportunities for Zijin Mining and Hawkins
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zijin and Hawkins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins and Zijin Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zijin Mining Group are associated (or correlated) with Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Zijin Mining i.e., Zijin Mining and Hawkins go up and down completely randomly.
Pair Corralation between Zijin Mining and Hawkins
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Hawkins. In addition to that, Zijin Mining is 1.35 times more volatile than Hawkins. It trades about -0.17 of its total potential returns per unit of risk. Hawkins is currently generating about 0.44 per unit of volatility. If you would invest 10,625 in Hawkins on September 2, 2024 and sell it today you would earn a total of 2,826 from holding Hawkins or generate 26.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Hawkins
Performance |
| Timeline |
| Zijin Mining Group |
| Hawkins |
Zijin Mining and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Hawkins
The main advantage of trading using opposite Zijin Mining and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Hawkins can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hawkins will offset losses from the drop in Hawkins' long position.| Zijin Mining vs. Torex Gold Resources | Zijin Mining vs. Wesdome Gold Mines | Zijin Mining vs. Northern Star Resources | Zijin Mining vs. Regis Resources |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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